Korea: Business confidence moderates in December, remains in pessimistic territory
November 30, 2015
The forward-looking business confidence indicator (BSI) for the manufacturing sector published by the Bank of Korea (BoK) moderated to 69 points in December from 70 points in November. The index is not much higher than the two-and-a-half year low 67 points registered in July, and is still well below the 100-point threshold that separates pessimistic from optimistic territory.
According to the Bank, sentiment among export-oriented firms worsened, although confidence among domestic-demand oriented businesses was unchanged. Expectations regarding sales, profitability and raw material prices were also down in December compared to the previous month.
Meanwhile, the BSI’s current business conditions index fell from 71 points in October to 68 points in November.
Author: Carl Kelly, Economist